Chapter 11 – Payroll Taxes, Deposits, and Reports
57. Rick O’Shea, the only employee of Hunter Furniture Company, makes $30,000 per year
and is paid once a month. For the month of January, his federal income taxes withheld are
$180, state income taxes withheld are $37, social security is 6.2% on a maximum wages of
$106,800, Medicare tax is 1.45%, State Unemployment Tax is 4.2%, and Federal
Unemployment tax is .8%, both on a maximum wages of $7,000 per employee. What is the
employer’s payroll tax expense from Rick’s paycheck?
58. Samantha Rodriguez had gross earnings for the pay period ending 10/15/13 of $4,785. Her
total gross earnings as of 9/30/13 were $104,500. Social Security taxes are 6.2% on a
maximum earnings of $106,800 per year. The Social Security tax due by her employer from
her 10/15/13 paychecks is:
Chapter 11 – Payroll Taxes, Deposits, and Reports
Matching Questions
82. Match the accounting terms with the description by entering the proper number.
1. Preprinted government form used by the
employer to report payroll tax information relating
to social security, Medicare, and employee
income tax withholding to the Internal Revenue
Service
Transmittal of Wage and
Tax Statements, Form W-3
5
2. Preprinted government form used by the
employer to report unemployment taxes for the
calendar year
Experience rating system
3
3. A system that rewards an employer for
maintaining steady employment conditions by
reducing the firm’s state unemployment tax rate
Wage and Tax Statement,
Form W-2
7
4. Another term for Wage and Tax Statement,
Form W-2
Unemployment insurance
program
8
5. Preprinted government form submitted with
Forms W-2 to the Social Security Administration
Employer’s Quarterly
Federal Tax Return, Form
941
1
6. Another term for Experience rating system
Employer’s Annual
Federal Unemployment Tax
Return, Form 940
2
7. Preprinted government form that contains
information about an employee’s earnings and tax
withholdings for the year
Withholding statement
4
8. A program that provides unemployment
compensation through a tax levied on employers
Merit rating system
6